NTT DoCoMo is writing $4.7 billion off the value of three of its major overseas investments. The company was forced into the move by the massive decline in the value of mobile carriers. The news is a further flow to the Japanese mobile operator, which is struggling to attract a significant number of subscribers to its domestic 3G service.
The biggest write down is in the value of US operator AT&T Wireless. DoCoMo is writing $2.8 billion off its 16% stake, which it acquired in December 2000 for $9.8 billion. DoCoMo is also writing $1 billion off its 20% stake in European operator Hutchinson 3G.
KPN Mobile NV is the subject of the final write down. The value of DoCoMo’s investment will be reduced by $893.2 million. The alliance is intended to help spread its i-mode service across Europe.